Organizational Structure

Introduction:

In order for an organization to operate at its optimum efficiency there first needs to be a structure

involved.
Organizational structure defines how tasks are divided, grouped and coordinated in organizations
It is the grouping, dividing and coordinating of jobs in an organization with the aim of

accomplishing the goals of the organization.

Every organization has a structure that clarifies the roles that organizational members perform so

that everyone understands their responsibilities

The formal structure of an organization provides two important roles for organizational members
The structure of an organization clarifies roles for organizational members so that each member

knows what they are supposed to do and who they report to

The structure also dictates the amount of control an organizational member has regarding his job

in the organization
The structure consists of a combination of 6 different elements which are work specialization,
departmentalization, chain of command, span of control, centralization and decentralization and
formalization each of which has an impact on how tasks are carried out in the organization

Work Specialization:

The first element that affects the structure of an organization is work specialization which defines

how tasks are subdivided into separate jobs.

It specifies if a job is completed by an individual or is broken down into separate steps and

completed by several individuals.

The more a job is broken down into smaller tasks the more specialization is required by each

individual worker.
High specialization can lead to high efficiency but can lead to boredom by workers who are

required to perform the same repetitive task over and over.

An example of high specialization would be a company creating chairs and a person is assigned
creating legs, another creating the chair arms, another creating the back and another creating the
seat.

Departmentalization:

The next element of organizational structure is departmentalization which establishes how jobs

are grouped together.

Jobs can be grouped in many ways such as by job function, product line or territory.

A company with a high level of departmentalization could have the similar jobs grouped to be
handled by a suitable team or department. This would lead a high level of efficiency and
effectiveness in completing these jobs. This would also improve cooperation among employees as

they would be working together on

On the other hand, low level of departmentalization would create confusion and result in an
environment of confusion and disorganization and reduce workplace productivity. This also
would lead the workers to be confused as well and decrease job satisfaction in the process.

Chain of Command:

The next element is chain of command which provides a line of authority from the top to the

bottom of an organization and spells out who reports to whom.

Having a clear chain of command would give employees a good idea of who they report to and
who that person reports to and so on. This creates efficiency when reporting problems or
communicating with workers. For example, when a worker communicates a problem to his
supervisors manager, the supervisor doesn't have an opportunity to correct the problem.
Managers, while familiar with higher-level strategies and planning, aren't prepared to correct

operational issues or the day-to-day activities of front-line employees.

When employees frequently ignore the chain of command, it may affect the morale of supervisors
and managers. Companies without a clear chain of command can create an atmosphere of
uncertainty and chaos, which affects the morale of all workers in the organization. Poor company
morale may lead to high employee turnover and lower productivity.

Span of Control:

The structure of every organization must also dictate how many managers are required to direct
their employees. This is known as the span of control which determines how many individuals a

manager can efficiently and effectively manage.

Companies with wider spans of control require fewer managers and are more efficient than
companies with narrow spans of control. If the span of control becomes too large however,

employees may not receive adequate leadership and support from their managers.
A narrow span of control has three major drawbacks, firstly theyre expensive because they add
levels of management, second, they make vertical communication harder and lastly they
encourage overly tight supervision. However, if the span of control becomes too large, employees
may not receive

Centralization/Decentralization:

Another element of organizational structure is centralization and decentralization which

determines where the authority to make decision lies.

If top management makes all the organizational decisions with no input from lower level

personnel, the organization is considered to be centralized.

A centralized organization causes employees to feel left out and alienated.
The more that lower level managers are involved in the decision making process, the greater the

degree of decentralization that exists in the organization

A decentralized organization can act more quickly to solve problems, more people provide input
into decisions, and employees are less likely to feel alienated from those who make decisions that
affect their work lives.

Formalization

The final element of organizational structure is formalization which determines to what degree

the jobs in the organization are standardized.

A highly formalized job has clearly defined procedures and leaves organizational members little

freedom in regard to how they perform their tasks.

A low degree of formalization on the other hand allows employees high degree of flexibility in
how they get they get their jobs done.

Conclusion

Every organization must determine which type of structure will allow the organization to work

the most effectively and efficiently towards reaching the organization's goals.
The view of the employee sees the organizational structure as determining how closely monitored
organizational members are and how much freedom they have when making decisions regarding

how they perform their jobs.

The type of structure used in an organization therefore directly affects employee performance and
motivation. Organizations which are structured with high levels of formalization and
specialization expect their employees to complete their tasks in a consistent and uniform manner
which results in little room for independent thinking by the employee. On the other hand
organizations which have a structure with wide spans of control and a low level of formalization
will encourage a greater degree of diversity in the behavior of their employees.